This second edition provides principals, teachers, and parents with new insight into early childhood education. Research underscores the importance of increasing emphasis on literacy and language acquisition, using assessment tools effectively, expanding community linkages, meeting the needs of a diverse student body, balancing academic and emotional learning, and infusing new technology into curriculum and instructional practices. Quality indicators for the organization include a continuing review of research, a public mission statement, scheduling practices reflecting developmental stages, grouping practices facilitating individual learning, and the allocation of sufficient time. Quality indicators for curriculum and instruction include balancing and integrating of all learning areas, varying teaching strategies, providing adequate materials, and creating a stimulating environment. Quality indicators for personnel include a knowledgeable principal who collaborates with key groups, programs, and agencies. Quality indicators for assessment and accountability include an approach consistent with developmental philosophy and research, a school, that is ready for children, and principals who support the implementation and management of programs. Quality indicators relating to parents include sustained communication, partnerships with schools, program involvement, and a principal who works with the community to address unique needs and situations. Quality indicators relating to the community include staff who understand the impact of culture and home environment on learning, provisions for child care, and a principal who works to ensure a smooth transition into public schools. Appendix A provides a checklist of quality indicators, and Appendix B provides a planning guide for school improvement. (Contains 46 references.) (TEJ)